On the back of its new products and network expansion, HMSI aims to grow over 150 per cent in 100-110 cc motorcycle segment, he added.

"Overall, we are confident of customer demand for Honda two-wheelers and eye 43 per cent growth with 39.3 lakh unit sales in FY'14," Muramatsu said.

HMSI is expanding its sales outlets to about 2,500 by end of this fiscal from 1,950 outlets in FY'13.

Developed specifically for the Indian customers, the new entry-level 'Dream' series motorcycle is powered by a 110 cc engine and the company claims that it will give a mileage of 74 kilometre per litre of petrol.

HMSI's another mass segment bike 'Dream Yuga' with an 110 cc engine is the cheapest bike that is available between Rs 45,101 and Rs 48,619 (ex-showroom, Delhi) as per its official website.

Earlier this month, Honda's compatriot Yamaha had said it is working towards rolling out the world's cheapest motorcycle, priced at around USD 500 from India with setting up of its fifth global research and development centre here.

Yamaha had said India will become the global hub for development of low-cost bikes, which will be exported to other countries in Africa and Latin America.